New Delhi, Feb 11: Union Finance Minister Nirmala Sitharaman announced on Wednesday that the central government will provide Rs 25.44 lakh crore to states as part of the tax devolution process for the 2026-27 fiscal year. Responding to the Budget discussion in the Lok Sabha, the Finance Minister detailed a strategy centered on infrastructure expansion and the promotion of employment through targeted industrial hubs.
The central government has set a total expenditure target of Rs 53.47 lakh crore for the upcoming financial year. Sitharaman mentioned that a key pillar of this fiscal plan is the establishment of medical hubs across various states, which are expected to generate significant local employment opportunities while strengthening the nation’s healthcare framework.
“The FM said she would set up medical hubs in various states that would create jobs,” an official statement noted during the proceedings. She mentioned that the government’s focus remains firmly on labor-intensive sectors to ensure broad-based economic growth. To support this, the Finance Minister noted that the Centre will assist states in developing textile parks, further boosting the manufacturing and export potential of the regions.
Sitharaman mentioned that the substantial allocation to states via tax devolution is intended to empower local governments to execute their development agendas. She noted that by prioritizing sectors that require high human involvement, the budget aims to address the twin goals of industrial modernization and job security for the workforce across the country.
